Saturday, 24 June 2017

Fact of the Day: Number of China's Rich X9

The wealth gap in China is getting even bigger with even more wealthy people
A private survey has found the number of rich people in China has risen nearly nine times in a decade.

Those with at least 10 million yuan of investable assets hit 1.6 million in 2016, up from 180,000 in 2006, according to the 2017 China Private Wealth Report by Bain Consulting and China Merchants Bank.

The overall value of the private wealth market rose to 165 trillion yuan last year, growing 21 percent annually from 2014-2016. It's expected to reach 188 trillion yuan this year.

The rich spend a lot of money on luxury and invest abroad
There are about 120,000 "high net worth individuals" who had at least 100 million yuan worth of investable assets, up from fewer than 10,000 people in 2006.

The percentage of rich people with overseas investment rose to 56 percent this year, up from 19 percent in 2011.

The top four destinations for investment were Hong Kong, the United States, Australia and Canada, though Hong Kong's popularity fell 18 percent and the US fell 3 percent from 2015-2017.

Respondents said their top reasons for investing overseas was to diversify risks, capture market opportunities and migrate.

The wealthy are concentrated in major cities and coastal areas, but the survey found 22 provinces have at least 20,000 high net worth individuals.

One thing wealthy Chinese can't buy is class...
One can't help but wonder if this wealth amassed in a short period of time is due to loose credit from banks and they've taken advantage of this to invest in real estate and other appreciative assets.

The other possibility is investing early in property and it has significantly appreciated within a decade.

Either way it's a staggering number of nouveau riche in China who are looking for places to spend their money. They are definitely looking overseas for greater security and better living environment.

Anyone who has the access to some kind of wealth are trying to get it out of the country through investing in insurance products or real estate.

But the one thing they can't buy is sophistication and manners.

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